- This topic has 3 replies, 3 voices, and was last updated 2 years, 5 months ago by .
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A special levy to renovate the building (in Sydney) was implemented via a loan from a lender but without advising the owners how much the loan is for and how long will I for example be paying the special levy to pay off the loan.
I asked the Strata Committee (comprised of 3 owners only out of 24 owners of the building) to email me a copy of the loan contract. They refused.
I then asked the strata manager to publish the loan contract on their portal for access by all the owners. They refused. BTW, the strata manager was “appointed” just as the special levy started being charged.
Since the OC approved the renovations 2 years ago at the AGM, the strata committee has not organised another AGM since then. I bought my unit 1.5 year ago.
Questions:
Is it legal NOT to hold an AGM every year? If it is not legal, what can I do to call for one?
What can I do to get a copy of the executed loan agreement so I can determine how long will I be paying the special levy for?- This topic was modified 2 years, 5 months ago by .
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Is it legal NOT to hold an AGM every year? If it is not legal, what can I do to call for one?
The law demands an AGM every financial year which means you could go up to almost two years without having one if, for instance, the last one was held in July 2020 (FY 20-21) and the next one is delayed until June 2022 (FY 21-22).
What can I do to get a copy of the executed loan agreement so I can determine how long will I be paying the special levy for?
This is a bit confusing. Normally strata schemes chose between either having a special levy or getting a loan. If you are talking about an increased levy to cover repayments of the loan, then that will be revealed by the terms of the loan agreement and your share of the repayments, as determined by tour unit entitlements.
Call Fair Trading (13 32 20) on failure to hold AGMs and regarding the strata manager refusing to let you see the details of the loan. Or apply for mediation at Fair Trading, citing Section 232(2) of the Act – failure to fulfil a function
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
- This reply was modified 2 years, 5 months ago by .
Section 100 of the Strata Schemes Management Act provides that an OC can borrow money but they can only borrow money if a resolution approving the loan has been passed at a general meeting of the owners.
So the OC must have approved a resolution to enter into the loan. You should ask for the notice of meeting and minutes of the meeting approving the loan, it would have to have included the detailed terms of the loan and details of how it was going to be paid back. You are entitled to see those documents, as they are records of the OC.
Of course if the owners didn’t approve the loan at a general meeting, then that is a whole other matter, and I would be asking some serious questions. The Strata Committee doesn’t have the power to approve a loan.
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